MANILA – The escalating Middle East conflict will lead discussions at ASEAN economic ministers’ retreat on March 13, joined by a virtual foreign ministers’ huddle to address market turmoil from soaring oil prices and shipping snarls hitting export-driven Southeast Asian economies.
As 2026 ASEAN chair, the Philippines hosts the sessions amid U.S.-Israeli strikes on Iran, now two weeks old, claiming around 2,000 lives, that have crippled the Strait of Hormuz. This vital passage, carrying one-fifth of global oil and LNG to Asia, stands effectively closed, driving crude above $100 per barrel.
Philippine Trade Undersecretary Allan Gepty flagged unavoidable fallout on inflation and employment. “The concern is real; we can’t overlook it,” he told reporters. The Philippines draws most oil from the Middle East, while Qatar’s LNG pause squeezes supplies further.
ASEAN states act swiftly: Manila shortened the government workweek for fuel savings and seeks congressional power to waive fuel excise taxes; Vietnam slashed retail prices overnight on March 12 but cautioned on volatility; Thailand curbed energy exports beyond Laos and Myanmar earlier this month.
Foreign ministers, decrying the “regrettable” escalation, demand immediate halt to fighting, restraint, civilian safeguards, and dialogue per international law. Gepty stressed synchronized responses: “Our actions must align.”